Avalara,
Inc., a leading provider of cloud-based software that delivers a broad
and growing array of compliance solutions related to sales tax and other
transactional taxes, today announced it has acquired the entire line of
Zytax energy-related tax automation solutions for U.S. and
international jurisdictions. Incorporating Zytax’s products now provides
retail fuel and energy companies with a single source for all their
transactional tax processing needs. Avalara acquired the Zytax offering
from FuelQuest, a provider of on-demand software and services for global
downstream energy companies.
Fuel excise taxes are some of the most complex and difficult taxes
for businesses today to process accurately and efficiently. Zytax
offers three cloud-based solutions that address this complexity. Its
flagship product, Zytax Compliance,
enables on-time, signature-ready motor fuels excise tax filing and
audit defense through automation of the end-to-end filing process. Zytax Determination
identifies and calculates energy taxes, providing financial control and
transparency across a wide range of product types including petroleum,
natural gas, and biodiesel. Finally, Zytax Government increases fuel revenue collections by easing returns filing submission, processing, and auditing for government agencies.
“This acquisition continues Avalara’s longstanding strategy of
extending our reach into new industries, providing more businesses with a
single place to turn for all of their transactional tax requirements,”
said Avalara founder and CEO Scott McFarlane. “A primary objective for
our company in an acquisition is that we gain either industry-leading
tax content, automation technology, or expert personnel; and, in this
case, we have achieved all three.”
“As a leading provider of cloud-based sales tax automation services,
Avalara is the ideal complement for Zytax and its customers,” said Matt
Tormollen, former FuelQuest CEO and now executive vice president and
general manager of Avalara’s newly formed Excise Tax Division. “The
energy industry has long demanded a single solution to drive accuracy
across all tax areas. Avalara is now the company that can meet that
demand.”
Over the past decade, Avalara has developed, purchased, or licensed
databases containing deep tax data and knowledge related to sales tax
and other transactional taxes, including tens of thousands of state and
local tax rules, rates, and exemption conditions, as well as more than
ten million UPC codes linked to taxability rules. Today Avalara
maintains and continually updates an extensive library of tax content,
enabling tax decisions on millions of products in multiple industries
worldwide.
Avalara’s acquisition of excise tax automation software and expertise
is the company’s latest move to broaden and deepen its tax content
domestically and internationally. “Well-researched and maintained
content is the lynchpin for any accurate tax decision,” said McFarlane.
“People tend to focus on rates, but it takes extensive tax knowledge to
identify and interpret the rules that underlie energy excise taxes as
well as to stay current with the frequent changes that occur. This
addition extends our reach by helping make compliance more accurate for
tens of billions of dollars of energy-related excise taxes per year.”
About Avalara – Making Sales Tax Less Taxing.
Avalara helps businesses of all sizes achieve compliance with sales
tax and other transactional tax requirements by delivering
comprehensive, automated, cloud-based solutions that are fast, accurate,
and easy to use. Avalara’s end-to-end suite of solutions are designed
to effectively manage the complicated and burdensome tax compliance
obligations imposed by state, local, and other taxing authorities in the
United States and internationally.
Avalara is integrated with leading accounting, ERP, ecommerce and
other business applications. Founded in 2004 and privately-held,
Avalara’s venture capital investors include Battery Ventures, Sageview
Capital, Arthur Ventures, and other institutional and individual
investors. Avalara employs more than 500 people at its headquarters on
Bainbridge Island, WA and in offices across the U.S. and in London,
England and Pune, India.
In connection with this transaction, Greenberg Traurig, LLP served as
legal counsel and JMP Securities acted as exclusive financial advisor
to FuelQuest, Inc. DLA Piper LLP (US) acted as legal counsel to
Avalara.
Wednesday, April 30, 2014
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